The New Currency Act of 1871 gave Japan’s currency the name yen.
Japan adopted the yen during the Meiji era, a period of rapid political, economic, and institutional modernization. The act created a decimal currency system and defined the yen as 100 sen. It replaced the complicated Tokugawa-era monetary arrangements, which had used different gold, silver, and copper coins with varying values.
The word yen is commonly explained as meaning “round object,” referring to the shape of coins. In Japanese, the currency is written 円 and is pronounced en, while yen became the established English spelling.
The yen’s early system included gold coins, silver coins, and copper denominations. The sen and rin later ceased to be practical subdivisions because inflation reduced their value. Japan’s modern currency is issued by the Bank of Japan, while coins are produced by the Japan Mint.